Forex Market Analysis: CADJPY has Reached the 84.18-83.86 Resistance Area

Fundamental Indication:
CAD: Senior deputy Governor Carolyn Wilkins said that the Bank of Canada is encouraged by a broadening of economic strength, which includes gains across 70 per cent of industries, she also added that the gains are something Canada hasn’t seen since before the oil-price collapse nearly three years ago. These statements among others were seen as a “hawkish” direction from the country’s central bank towards its first rate increase in nearly seven years.

JPY: The BOJ policy balance rate was kept unchanged with actual at -0.10%, previous -0.10% and forecast -0.10%. The BOJ governor, Mr. Kuroda’s speech at the BOJ press conference can influence the direction of the pair.

Technical Analysis:
The pair has approached the 84.18-83.86 resistance area after a week of consistent rally except from on 14th June, 2017. The pair has also broken above its 53 days symmetrical triangle indicating a probable continuation of short term trend.

Scenario 1:
·if the pair closes negative with a bearish candlestick confirmation, we advise a “SELL”

·Stop loss at the high of the candlestick confirmation

·First target price at 81.42

·Second target price at 80.74

Scenario 2:·If the pair rallies above the 84.18-83.86 resistance area and pulls back to it with a bullish candlestick confirmation, we advise a “BUY”